Pressure has been brought to bear on the Department of Health by the Recruitment and Employment Confederation, who claimed it was “unjust” for recruitment agencies to have to take out medical malpractice insurance as agencies had “no supervisory or control powers over staff they supply once they are placed on an NHS assignment”.

The NHS wanted to impose these conditions on agencies when tendering for contracts – but no insurance company was willing to provide the cover.

“Agencies were faced with a raw deal by being asked to accept responsibility for temporary staff and it could have put them out of business if the NHS had stuck with it,” said Robin Kirkland, MD of insurers Dallas Kirkland, who was part of the REC’s negotiating team.

The government has agreed that agencies must check that medical staff are members of the relevant professional body, that they carry a fitness to act certificate and that individuals have insurance cover.